Crypto exchange HashKey debuts in Hong Kong amid market volatility

Core Viewpoint - HashKey Holdings, a cryptocurrency exchange, made its market debut in Hong Kong, raising $206 million through its IPO, despite experiencing volatility in its share price shortly after listing [9]. Company Overview - HashKey, founded in 2018, provides services such as asset management, brokerage, and tokenization, and operates the largest licensed crypto exchange in Asia [9]. - The company plans to focus on cash flow rather than profitability in the near term, continuing to invest as the industry grows [7]. IPO Details - HashKey's IPO was the first by a crypto company in Hong Kong, with demand for the institutional tranche reaching 5.5 times the amount of stock offered, while the retail tranche was nearly 394 times oversubscribed [9]. - The shares initially climbed 6.6% on debut but later fell slightly below the IPO price of HK$6.68 [9]. Market Context - The cryptocurrency market has seen significant volatility, with Bitcoin dropping as much as 36% after reaching an all-time high of over $126,000 in early October [4]. - Despite regulatory challenges in mainland China, Hong Kong has embraced digital assets, positioning itself as a leading financial hub [5][6]. Future Plans - HashKey intends to invest IPO proceeds in technology infrastructure, market expansion, partnerships, and operational and risk management [8]. - The Hong Kong stock exchange is expected to have its best year since 2021, with over $34 billion raised from new listings so far [8].